Late Friday afternoon Governor Eric Greitens signed Missouri’s nearly $28billion fiscal year 2018 budget into law. At the same time, he announced he would be withholding $251 million to help balance the budget, as revenue has not grown as quickly as expected. Fiscal Year 2018 begins July 1.
Most of the withholds are from the Department of Social Services and the Department of Higher Education, including an additional withhold from the higher education core funding which brings the core funding for higher education to 9 percent below FY2017.
He did not withhold any funds from the foundation formula. As a result, the formula is expected to be fully funded. He did withhold some funds from K-12 transportation funding.
Governor Greitens Vetoes Fund Sweep Legislation
The governor also announced he was going to veto House Committee Bill 3 which would have directed the Commissioner of Administration to sweep funds from state funds into general revenue to pay for long-term care and nursing homes.
Proponents of the legislation felt it was a necessary to keep vulnerable Missourians in their homes. Opponents felt it was an unconstitutional one -time fix to a long-term problem.
Governor Greitens Signs Workplace Discrimination Legislation
Governor Greitens also signed Senate Bill 43 (Gary Romine-Farmington). This legislation will raise the standard of proof for employment discrimination cases under the Missouri Human Rights Act, exempts supervisors and managers who are not employers from being sued for discriminatory conduct, and set caps on damages awarded to successful plaintiffs.
Supporters of the bill believe it will improve the state’s economic climate and foster job growth. Opponents of the bill say it guts the Missouri Human Rights Act.
Governor Greitens Announces Plans on Minimum Wage Preemption
Lastly, Governor Eric Greitens announced that he would allow the legislation that will prevent municipalities from raising the minimum wage to become law without his signature. The law will go into effect on August 28, 2017. Currently, the City of Saint Louis is the only municipality with a minimum wage higher than the state’s minimum wage. Therefore, on August 29, the minimum wage in Saint Louis City will go from $10/hour back down to $7.70.